VA scraps troubled computer system at hospital

VICKIE CHACHEREAssociated Press Writer

Published Wednesday, July 28, 2004

TAMPA -- The Department of Veterans Affairs is scrapping an experimental $265 million computer system at Bay Pines veteran's medical center because it delayed surgeries, prompted congressional investigations and led to the resignation of several top officials.

Secretary of Veterans Affairs Anthony J. Principi said in a statement Tuesday that the agency is phasing out the Bay Pines test of the Core Financial and Logistics System, which was intended to integrate the hospital's services with its inventory, budgeting and planning programs.

The pilot project was intended to see how the system worked before it was expanded to the rest of the VA system, which would have cost taxpayers an additional $207 million.

Principi said Bay Pines would return to its previous computer system in October. Principi said a committee of senior VA officials will make recommendations about the remainder of the program's future.

An agency spokesman said Tuesday he could not say whether any of the money spent on the failed system would be recovered.

Five VA officials have quit or been reassigned since February due to problems at Bay Pines. Hospital employees were not fully trained in the system, and difficulty in using it led to suppliers not being paid, a shortage of surgical supplies and delays for some surgeries.

The computer system was installed last fall at Bay Pines as the first test site. Bay Pines is the fifth busiest hospital in the VA system and officials later conceded they never should have tested the system there.

Congressional investigators found the contractor awarded the contract, BearingPoint, was paid more than $200,000 as an incentive bonus for keeping the Bay Pines computer project on schedule even though employees were not properly trained to use it. BearingPoint officials declined comment Tuesday.

The trouble at Bay Pines came at a time when the hospital is experience huge growth in its number of patients and now cares for more than 70,000 patients a year.

U.S. Rep. C.W. Bill Young, R-Largo, who had been monitoring the VA's handling of the system, told the St. Petersburg Times that the agency will continue to test the experimental computer in a "controlled environment ... to see whether it has any value to the VA system."

Florida Sen. Bob Graham, who had held hearings on the computer system at the hospital in March, was angered by the outcome, the Times reported in its Tuesday's edition.

"At a time when VA's health care system is stretched to the limit, it is outrageous -- simply outrageous -- to waste millions upon millions of dollars on a failed computer system," he said.

Florida Sen. Bill Nelson said in a statement Tuesday he has serious concerns about the system since a visit to Bay Pines earlier this year and now wants to know what steps are being taken to recover the money spent on the system.

U.S. Rep. Jim Davis, D-Tampa, who had joined with Graham in March's hearing at Bay Pines, said Tuesday he continues to have questions about the project, and he hopes a pending report from the VA's inspector general will answer.